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This text reviews the past development and future prospects of the Northern Ireland economy. This is being done at a critical juncture (because of the potential economic impact of greater political stability and a devolved administration and also because various official reviews of economic policy are in progress). This text aims to update data and discussion contained in an earlier study by the authors, "Closing the Productivity Gap". Northern Ireland has had a longstanding position which has lagged behind the average UK and EU economic performance in terms of range of indicators - notably unemployment and living standard. A critical question is therefore, the extent to which is a process of convergence with the more successful regions occuring? The investigation of manufacturing, agriculture, business services and tourism suggests that any underlying convergence towards UK standards of performance has been weak. It is concluded that permanent peace might be a necessary condition for accelerated convergence towards the rest of the UK and EU but it is not sufficient by itself.